OnTheMarket has this morning announced it has raised £3.4m through a placing of shares.
It has placed 4,857,143 new ordinary shares at a price of 70p, representing a discount of 7.9 per cent. They have been placed with a combination of existing and new investors.
The placing is being undertaken under authorities approved at the portal company’s Annual General Meeting back in July and does not require shareholder approval.
OnTheMarket has also made a strategic investment for a 20 per cent share in Glanty Ltd the owner and developer of the PropTech lettings platform teclet.
The platform is designed to reduce overheads and maximise efficiencies for lettings agents. Currently its clients include Spicerhaart, Hunters, Belvoir, Chestertons, and others.
The deal for the 20 per cent share is a cash purchase of £797,000, spread over 10 months; OTM will have the right to appoint a director to the board of Glanty.
On top of that, the firm has also agreed an option to acquire the remaining 80 per cent of Glanty.
If that goes ahead it’s likely to cost some £1.5m plus a revenue deal, with OTM also paying a £1.4m Glanty debt.
The portal says it intends to work with Glanty with a view to offering teclet and, potentially, further technology solutions to its agent shareholders and customers.
The portal has also given shareholders an update on its financial position this morning.
Its statement says: “OnTheMarket is pleased to reiterate its previous guidance, as set out in the announcement of 26 September 2019, that the Company expects to achieve a broadly breakeven adjusted EBITDA position for the financial year to 31 January 2021 with monthly breakeven achieved in Q2/Q3.
“The Company continues to believe that implementing its current strategy will achieve the strong growth that the Board anticipates over the medium term for the benefit of all stakeholders.
“The Company continues to make progress in converting and signing up agents to paying contracts, and, as announced on 10 December 2019, it has now signed up over 3,000 more agents on paying contracts since the time of the Company's admission to AIM. The Company has also maintained over 12,500 agent offices listing on the OnTheMarket portal.”